Interactions between goods and services in international trade: Implications for customs valuation and rules of origin

This paper examines whether the customs valuation systems and rules of origin are sufficiently attuned to the changing landscape of commercial realities characterised by new and diverse configurations of goods-services trade. It proposes a framework to categorise relevant configurations of goods-services trade and applies it to identify potential challenges arising from the current procedures for customs valuation and origin determination. While the existing rules provide an adequate structure for doing business and achieving legitimate trade policy objectives, challenges can arise across different configurations of goods-services trade. Options for policy solutions include developing guidelines and implementation standards to fine-tune customs valuation and rules of origin that apply to specific goods-services trade configurations. The promotion of multilateral openness, harmonisation of rules and practices, and transparency of jurisprudence would contribute to minimising the impact and frequency of potential challenges.